Banking Codes and Standards Board of India
8. Products and Services 1 Deposit accounts
a. You may open different types of accounts with us such as, savings accounts, fixed deposits, current accounts etc. with us. You may open such accounts in the following styles:
i. Single ii. Joint
iii. Joint (Either or Survivor) iv. Joint (Former or Survivor) v. Joint (Latter or Survivor) orvi. In any other style.
b. We will make available ‘Basic Savings Bank Deposit Account’ (BSBDA) to all customers, without the requirement of any minimum balance. We will offer/provide minimum common facilities, without any charges. The relevant details will be made known to you in a transparent manner at the time of opening of the account.
c. The above accounts may be opened by you with nomination facility, wherever permissible. We will include, in the account opening form, the option for nomination as also the option for indicating the name of the nominee in passbooks/account statements/FDRs. We will explain the implications of the foregoing accounts as also the nomination facilities at the time of opening of the account.
d. We will acknowledge the receipt of your nomination details and record the fact of nomination on the passbook/account statement/FDRs. At your request, we will also indicate the name of the nominee thereon.
e. We will also inform you about liquid deposit facility, sweep account and similar types of products offered by us and their implications and procedures involved, at the time of opening of account.
8.1.1 Account opening and operation of deposit accounts Before opening any deposit account, we will:
a. carry out due diligence as required under 'Know Your Customer' (KYC) guidelines;
b. ask you to submit or provide necessary documents or proofs to do so;
c. obtain only such information to meet with our KYC, Prevention of Money Laundering or any other statutory requirements. In case any additional information is asked for, it will be sought separately and we will explain the reason for obtaining such additional information. Providing such information will be voluntary, unless required by law. The information will be kept confidential, unless required by law enforcing agency/banking regulator;
d. provide the account opening forms which will contain details of essential information required to be furnished and documents to be produced for verification and/or for record for meeting the KYC requirements;
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e. require you to submit documents in respect of KYC at periodic intervals to enable us to update our records as required;
f. explain the procedural formalities and provide necessary clarifications sought by you while opening a deposit account;
g. give you the Most Important Terms and Conditions (MITC) governing the deposit facility you have sought to avail;
h. at the time of opening of the account, make available to you the details of the insurance cover in force under the insurance scheme, subject to certain limits and conditions offered by the Deposit Insurance and Credit Guarantee Corporation of India (DICGC).
8.1.2 Changing your account
a. If you are not happy about your choice of current/savings account, you may within 14 days of making your first payment into the account, approach us to switch to any of our other accounts. Alternatively, you may ask for refund of the amount which will be given back to you with any interest it may have earned. We will ignore any notice period and any extra charges.
b. If you decide to close your current/savings account we will do so within three working days of receiving your instructions, subject to your completing all formalities and submitting all required documents.
c. If you want to transfer your account to another branch of our bank we will do so. On receiving your request, we will transfer the account to the transferee branch within 3 (three) working days without insisting on fresh proof of address and on the basis of a self-declaration from you giving your current address. You will have to submit documentary proof of this address within a period of six months. We will intimate you as soon as the account is operationalised. The new branch will be provided with information on your existing standing instructions/direct debits, if any.
8.1.3 Savings/Current accounts
When you open a deposit account, we will:
a. inform you about number of transactions, cash withdrawals, etc. that can be done free of charge in a given period;
b. inform you about the kind of charges, if any, in case of exceeding such
limits. Details of the charges will be included in the Tariff Schedule;
c. inform you of the rate at which interest is paid on your savings deposits, how it is calculated and the periodicity of its payment.
8.1.3.1 Minimum balance
a. The minimum balance to be maintained in the savings bank account will be displayed in our branches.
b. For deposit products like savings bank account and current account or any other type of deposit account, we will inform you:
i. about the minimum balance to be maintained as part of terms and conditions governing operation of such accounts;
ii. about charges which will be levied in case of failure to maintain the minimum balance in the account by you. Details of the charges will be included in the Tariff Schedule;
iii. 30 days in advance, of any change in minimum balance to be maintained. During this notice period, we will not charge you for non-maintenance of such higher minimum balance prescribed.
8.1.3.2 Charges
Specific charges for issue of cheque books, additional/duplicate statement of accounts, duplicate passbook, copies of paid cheques, folio charges, debit card, ATM card, verification of signature, return of cheque, change in mandate or style of account, closure of savings bank/current accounts etc., will be included in our Tariff Schedule. Concessions or relief given will not be withdrawn during the original validity period of the concession/relief.
8.1.3.3 Passbook/statements
a. To help you manage your account and check entries in it, we will provide you with a monthly statement/e-mail statement (subject to your acceptance) of account unless you have opted for a passbook.
b. You can ask us to provide you with account statements more often than is normally available on your type of account, at a charge. This charge will be indicated in the Tariff Schedule.
c. We will indicate our MICR Code and IFS Code in passbooks and statements of accounts.
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74 d. We will make available the customer care number of the Bank/Contact
number of the branch in passbooks and statements of accounts.
e. We will ensure that entries in your passbook/statements are brief, informative and intelligible.
8.1.3.4 Upgradation of deposit accounts
In case your account meets the terms for upgradation, we will upgrade your account only after obtaining your consent in writing or through any other mode or where your consent is obtained through authenticated electronic means after necessary validation.
8.1.4 Accounts of minors
a. We will tell you, on request, how a deposit account can be opened in the name of a minor and how it can be operated.
b. We will intimate the date on which the minor becomes major.
8.1.5 Inoperative/Dormant accounts We will:
a. inform you when you open your account, the circumstances under which your account will be classified as inoperative/dormant. You will also be informed at least three months before your account is classified as inoperative/dormant and the consequences thereof;
b. also endeavour to send an SMS/e-mail advising that your account is being classified as inoperative/dormant;
c. notify the jointholder(s) also before an account is classified as inoperative/dormant;
d. inform you of the procedure to be followed if you want to activate the account;
e. not levy any charge merely because an account is inoperative/dormant;
f. not charge you for activation of the inoperative account.
8.1.6 Closing your account
Under normal circumstances, we will not close your account without giving you at least 30 days’ notice indicating the reasons for such closure. In such cases, you will be required to make alternate arrangements for cheques already issued by you and desist from issuing any fresh cheques on such account.
8.2 Clearing cycle/collection services
a. We may provide a dropbox facility to enable you to deposit cheques to be sent for collection. Necessary precaution will be taken to ensure that cheques deposited in the dropbox are properly and promptly accounted for. However, you may, if you so desire, hand over cheques at the counter against acknowledgement instead of depositing in the dropbox.
b. We will inform you about the clearing cycle for local instruments and the outstation instruments including details such as cut-off time for lodging of instruments for same day clearing, when you can withdraw money after lodging instruments and when you will be entitled to earn interest on delayed collection as per our cheque collection policy.
c. We will pay you compensation, as per our cheque collection/
compensation policy for any delay in collection of instruments, without waiting for a demand from you.
d. We will inform you immediately by SMS/e-mail when a cheque deposited by you for collection is returned unpaid.
e. We will return a cheque unpaid/dishonoured along with a duly signed return memo indicating the date of return as also the reason for return/
refusal of payment within 24 hours.
f. If immediate credit for outstation cheques is offered, we will provide relevant information including the applicable terms and conditions, such as the limit upto which instruments tendered by you can be credited, operating accounts satisfactorily, etc.
g. We will proceed as per our cheque collection policy and provide all assistance for you to obtain a duplicate cheque/instrument in case a cheque/instrument tendered by you is lost in transit and compensate you as per our cheque collection/compensation policy.
h. We will give the above information when you open your account and whenever you ask for it. If there is any change in our cheque collection policy, the revised policy will be displayed on our website and will be made available at all our branches.
8.3 Cash transactions
a. We will accept cash and dispense cash at any of our branches under
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core banking subject to any restrictions on type of transaction or charges, if any, applicable to such transactions.
b. We will exchange soiled/mutilated notes and/or small coins and issue good quality, clean bank notes/coins at all our branches. We will extend this facility, within prescribed limits to walk-in customers too.
c. For transactions above a specified amount we may require you to furnish your PAN.
8.4 Direct debits and standing instructions We will:
a. at the time of opening the account tell you how direct debits/standing instructions work and how you may record/cancel them and the charges connected with them. Charges will be levied as per the Tariff Schedule;
b. act upon mandates given by you for direct debits [say Electronic Clearing Service (ECS)] and other standing instructions. In case of any delay or failure in executing the mandate resulting in financial loss or additional cost, we will compensate you as per the compensation policy of the Bank. If the mandate cannot be executed due to insufficient balance in your account, we will levy charges as per the Tariff Schedule;
c. credit your account along with interest as soon as it is determined that any amount has been unauthorisedly/erroneously debited from your account and compensate you as per the compensation policy of the Bank.
8.5 Stop payment facility We will:
a. accept stop payment instructions from you in respect of cheques issued by you. Immediately on receipt of your instructions, we will give an acknowledgement and take action provided these cheques have not already been cleared by us;
b. levy charges, if any, as indicated in the Tariff Schedule;
c. reimburse and compensate you as per the compensation policy of the Bank in case a cheque is paid subsequent to the receipt of stop payment instructions by us.
8.6 Cheques/debit instructions issued by you We will:
a. keep original cheques/debit instructions paid from your account or copies or images of the cheques received from the presenting bank under CTS, for such periods as required by law;
b. give you the cheque/image of cheque/debit instruction or a copy thereof as evidence as long as records are available with us. If there is a dispute about a cheque paid/debit instructions from your account and in case the request for such cheque, etc. is made within a period of one year from the date of cheque/debit instruction, no charge will be levied. In respect of requests received beyond this period, charges will be levied as per the Tariff Schedule;
c. inform you how we will deal with unpaid cheques and out-of-date [stale]
cheques. The details of charges to be levied will be included in the Tariff Schedule.
8.7 Fixed deposits
a. When you place a fixed deposit with us, we will obtain instructions from you in the account opening form for the disposal of your deposit at maturity.
b. Where there are no instructions for disposal of the deposit at maturity, we will inform you well in advance through letter/mail/SMS about its impending date of maturity.
c. In case we still do not receive any instruction from you, we will renew the deposit, excluding deposits like tax savings deposits etc, for the same period of time as the matured deposit at the prevailing rate of interest.
d. We will inform you the procedure for withdrawal of fixed deposit before maturity. This information will also be made available in the account opening form/MITC/reverse of the FDR.
e. We will inform you of the interest rates applicable and charges for premature withdrawal of fixed deposit.
f. We will permit premature withdrawals of fixed deposits in accordance with the mandate ‘Former or Survivor/Either or Survivor’, provided you have given us a specific joint mandate from all the depositors for the purpose. We will provide
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76 for such a mandate in the account opening form.
g. We will inform you, at the time of acceptance of the deposit, the terms and conditions and interest rate applicable in case you renew the deposits on a date after the date of maturity. This information will also be made available in the account opening form/MITC/reverse of the FDR.
h. We will advise you of provisions of Income Tax Act applicable to the interest income accruing to you on your deposits, our obligations under the Act and provisions available to you for seeking exemption from Tax Deduction at Source.
i. We will obtain Form 15 G or 15 H as applicable from you at the time of application if you are not liable to pay tax on your interest income. You may submit to us such form periodically as required, if you are not liable to pay tax on your interest income. We will acknowledge receipt of such forms.
j. We will issue the requisite certificate within the stipulated period if we deduct tax from interest paid/accrued on your deposits.
k. We will indicate the tax deducted, if any, on interest on fixed deposits credited to your savings/current account in the passbook/statement of account.
8.7.1 Advances against fixed deposits
We will explain the facility of loan/overdraft available against fixed deposits.
8.8 Settlement of claims in respect of deceased accountholders a. We will follow a simplified procedure for settlement of accounts of
deceased accountholders.
b. We will provide claim forms for settlement of claims of the accounts of deceased persons, to those who approach us for the forms. We will also place the claim forms on our website.
8.8.1 Accounts with survivor/nominee clause
a. In the case of a deposit account of a deceased depositor, where the depositor had utilised the nomination facility and made a valid nomination or where the account was opened with the survivorship clause ('either or survivor' or 'anyone or survivor' or 'former or survivor'
or 'latter or survivor'), payment of the balance in the deposit account to the survivor(s)/nominee of a deceased deposit accountholder will be made, provided:
i. the identity of the survivor(s)/nominee and the fact of the death of the accountholder, is established through appropriate documentary evidence;
ii. there is no order from the competent court restraining the Bank from making the payment from the account of the deceased.
In such cases, payment to the survivor(s)/nominee of the deceased depositors will be made without insisting on production of succession certificate, letter of administration or probate, etc. or obtaining any bond of indemnity or surety from the survivor(s)/nominee, irrespective of the amount standing to the credit of the deceased accountholder.
b. The survivor(s)/nominee would be receiving the payment from the Bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment shall not affect the right or claim which any person may have against the survivor(s)/nominee to whom the payment is made.
c. The payment made to the survivor(s)/nominee, subject to the foregoing conditions, would constitute a full discharge of the Bank’s liability.
d. In case of fixed deposits with 'Either or Survivor' or 'Former or Survivor' mandate, premature withdrawal on death of one of the depositors of the deposit by the surviving joint depositor(s) will be permitted only if there is a mandate from all the depositors to this effect.
8.8.2 Accounts without the survivor/nominee clause
In case where the deceased depositor had not made any nomination or for the accounts other than those styled as 'either or survivor' (such as single or jointly operated accounts), we will adopt a simplified procedure for repayment to the legal heir(s) of the depositor, keeping in view the imperative need to avoid inconvenience and undue hardship to the common person. Keeping in view our risk management policy, we will fix a minimum threshold limit upto which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.
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8.8.3 Time limit for settlement of claims
We will settle the claims in respect of deceased depositors and release payments to survivor(s)/nominee within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the
We will settle the claims in respect of deceased depositors and release payments to survivor(s)/nominee within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the